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longislemom
LIF Adult
Member since 8/06 912 total posts
Name:
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When appraisal is so low and
The bank doesnt recommend taking out that much equity..How else do you finance home improvement?
Personal loan rates are so high.
Help with ideas please.
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Posted 8/24/10 10:43 AM  |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: When appraisal is so low and
Honestly.. I wouldn't do home improvements I couldn't afford.
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| Posted 8/24/10 10:53 AM |
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longislemom
LIF Adult
Member since 8/06 912 total posts
Name:
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Re: When appraisal is so low and
I dunno..I disagree.
Are you saying that when people do a dormer or something they pay for it cash? 
I figured it was a home equity loan or some'n. I know some people could pro'ly afford cash but majority dont.
The estimates we've had are 60k up to 150k.  We were thinking it is a 60k job (master suite with bathroom).
Sure if it were a couple thousand it could be done.
kwim
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| Posted 8/24/10 11:01 AM |
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Cheeks24
Living a dream
Member since 1/08 8589 total posts
Name:
Cheeks
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Re: When appraisal is so low and
Posted by ave1024
Honestly.. I wouldn't do home improvements I couldn't afford.
I don't think it has anything to do with that. Her house didn't appraise for enough of what it will cost. How does that imply she can't afford. Not everyone has $100k laying around to do a job like that and home equity is the way to go because they can afford the monthly payments.
To the OP, I'm not really sure. House values will go back up but if you're going to sell soon I wouldn't do it. If you plan to be there for a long time, then I'd do it. Is the bank not giving you what you need? You can always have them come in and appraise the house. It costs money, but it might help you.
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| Posted 8/24/10 11:06 AM |
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longislemom
LIF Adult
Member since 8/06 912 total posts
Name:
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Re: When appraisal is so low and
Thanks Mici, it definately has nothing to do with that.
Our mortgage would only go up by $100 per month (inlcuding closing costs etc).
We were approved and everything but the guy said the existing mortgage plus the loan amount is around what the house if appraised for.
It made me realise how bad the market fell.
so...if we decided to sell soon we would just be selling to pay off the mortgage and not really have anything to take away from it. dh is ready to do it because we dont plan on moving for at least 10yrs...if ever, but its food for thought. kwim
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| Posted 8/24/10 11:13 AM |
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maybesoon
LIF Adult
Member since 9/09 5981 total posts
Name:
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Re: When appraisal is so low and
cash only! we paid for about 35K worth of upgrades and paid cash. 100K would take a longer of course but it can be done ! even if you could save half , you would be so much better off
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| Posted 8/24/10 12:32 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: When appraisal is so low and
Posted by Mici C
Posted by ave1024
Honestly.. I wouldn't do home improvements I couldn't afford.
I don't think it has anything to do with that. Her house didn't appraise for enough of what it will cost. How does that imply she can't afford. Not everyone has $100k laying around to do a job like that and home equity is the way to go because they can afford the monthly payments.
Sorry but I don't see it that way. The general concensus regarding afforability is your net worth.
Your net worth is basically your assets, minus your debt. To be able to "afford" this purchase, you need to either have liquid savings to use, or have sufficient equity in the house to be able to pull from.
It sounds like the OP has neither of these since she is looking to finance this purchase (not enough cash on hand) and her house isn't apprasing (little to no equity). This is not something that is realistic and frankly this is how people get themselves into serious financial trouble.
Sorry but I wouldn't be lowering my net worth even more with this type of work/purchase. If you have sufficient cash on hand, that's fine. But if this needs to be financed, I would not be doing this.
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| Posted 8/24/10 12:49 PM |
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lovemyfamily88
LIF Adolescent
Member since 5/10 641 total posts
Name:
????
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Re: When appraisal is so low and
Posted by maybesoon
cash only! we paid for about 35K worth of upgrades and paid cash. 100K would take a longer of course but it can be done ! even if you could save half , you would be so much better off
ITA, I would never borrow against my house. Cash only. If i cant pay for it now then I save till I can.
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| Posted 8/24/10 12:55 PM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19461 total posts
Name:
L
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Re: When appraisal is so low and
Posted by dina1999
Posted by maybesoon
cash only! we paid for about 35K worth of upgrades and paid cash. 100K would take a longer of course but it can be done ! even if you could save half , you would be so much better off
ITA, I would never borrow against my house. Cash only. If i cant pay for it now then I save till I can.
I agree.
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| Posted 8/24/10 1:47 PM |
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